The Basics of Using PPP Funds for Lobbying

The Basics of Using PPP Funds for Lobbying

The Paycheck Protection Program provided a valuable resource for struggling businesses to maintain their company payroll expenses and meet financial obligations in the face of the economic challenges of the COVID-19 pandemic. While these funds proved beneficial for millions of businesses, there were some restrictions that are important to note. Specifically, there were key restrictions on using PPP funds for lobbying.

What Does PPP Funds for Lobbying Mean?

In order to fully understand the restrictions, you need to understand what is meant by ‘PPP funds for lobbying.’ According to the SBA, lobbying refers to any actions that meet the lobbying definition set forth in the Lobbying Disclosure Act of 1995, and PPP funds for lobbying would be any funds received from the Paycheck Protection Program used to support those lobbying efforts.

What Restrictions Are There on PPP Eligibility for Non-Profits in Lobbying?

To maintain eligibility for PPP funding, businesses must meet clear guidelines, including restrictions on revenues generated from lobbying activities, the percentage of the business activities that are devoted to lobbying and more. These guidelines are in addition to the general program qualifications.

It is important to understand the SBA guidelines regarding PPP funds and lobbying efforts to ensure compliance with the program terms.